The Marginal Product of Labor Initially Rises as More Labor

question 36

Multiple Choice

The marginal product of labor initially rises as more labor is employed because of:

• A) division and specialization of labor.
• B) constant returns to scale.
• C) total factor productivity.
• D) an increase in profits from the additional output produced.
• E) a fall in the cost of hiring additional labor.

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Definitions:

Interpreting Information

The process of making sense of or assigning meaning to data, texts, or situations.

Organizing

The process of arranging resources and tasks to achieve objectives efficiently and effectively.

Normal Curve

A theoretical distribution of scores where the mean, median, and mode all share the same value and an equal percentage of scores fall on either side of the distribution. Also called a bell-shaped curve based on the visual form this type of distribution takes when graphed.

Smooth Curve

A type of curve in graphical representations that is continuously differentiable and does not have any sharp angles or breaks.